The Portland daily press., 1887-07-20
How One Big Fortune Was Made.

That exceedingly great fortunes are ac-
quired in railroad enterprises Is well known.
Jay Gould, the Vanderbilts, Russell Sage.
and scores OF others, have become princes of
commerce by buying, selling and manipulate
Ing railroads and their securities. Just how
the money has been made is not always ex-
planned to the public, but there are the for
tunes, as evidences that it has been made.
The railroad fight now going on before the
New Hampshire Legislature has drawn out
from prominent railroad man, Charles Sim
clair, the story of how several hundred thous
ands OF dollars were made very recently by
several gentlemen well known. in New Eng
land, and of profitable trade in a railroad.
The story is quite interesting, as illustrating
one way OF making money out of railroad
Mr.. Sinclair's story was told, with apparent
reluctance, to the railroad committee of the
New Hampshire Legislature. 1t relates to
the Worcester, Nashua and Rochester rail-
road, which was formed in 1883 by the con-
solidation of the Worcester and Nashua and
Nashua and Rochester railroads. The road
runs from Worcester, Mass, through
Nashua to Rochester, N. H., where it
connects with the Portland and Roch-
ester railroad. The capital stock of the
consolidated road Is divided into 3O,645
shares, of a par value of $3.50 each, making
the capital stock of the road $1,000, 800. The
road is also bonded for about one and three
quarters million dollars. OF the capital
stock OF the road 1905 shares, of par value
OF $4S0,5O0, was In the treasury of the road,
having come there through the arrangement
whereby the old Worcester and Rochester
brought stock in the Nashua & Rochester to
help build the latter road. When consolida-
ton was effected this Nashua and Rochester
stock became converted into Worcester,
Nashua 81 Rochester stock, and remained in
the treasury Of the consolidated road. The
value Of Worcester. Nashua and Rochester
stock in 1883, the year of the consolidation,
vas from $57 to $65 share; in 1884 from
900 to $40; by April 1st 1885, it was $40. rs a
share, and on October LIST, 1885. IL had
reached par, 500 share. The cause of this
appreciation in value was the demand for
the STOCK. This demand was caused largely
by Mr.. Sinclair, and some of his friends.
who were quietly buying it mp. In Decem-
Der, 1884, they had enough of the stock to
step in and take charge of the road by elect
ing new board Of directors. Among these
new directors we find the names of Mr.. Sim
clair and his partner in the brewing business,
the Hon. Frank Jones of Portsmouth. There
were also James p. Cook, of Salem. and Geo.
W. Armstrong, of Boston. Mr.. Jones does
not seem to have owned any of the stock at this
time, but the other three Sinclair, Cook and
Armstrong had about Il, 900 shares, which, at
pan, would be worth 81, 10000 But as Mr.. Sin
clair had been buying since 1880 of the stock
gradually, and as from 1883 to the election of
this board the price had 1uctuated from $50
to So rising to $40 as their purchases forced
II up, 1T is probable that 500 share is none
TOO low an estimate Of what it costs then.
lheir total outlay, at this rate, would have
Deen $4,000, aud they got for it stock of a
race value OF s1,2o0,OO0. If they could
bring mat stock up to par it is plain that